Mortgage until 103 — but that’s fine

Bay of Plenty man Terry Ennis says having a mortgage in retirement is not as bad as it’s sometimes made out to be.

Stuff has reported that an increasing number of people are carrying mortgage debt past 65 and it can cause significant mental health problems.

Australian researchers said the impact of mortgage stress on older people was comparable to a long-term health condition.

But Ennis said he was managing fine, even though he is not expected to pay his mortgage off until he is 103, in 2045.

He and his late wife took out a large mortgage when they first bought a home in Papamoa in 2007, he said. But in 2016 they discovered she was unwell and downsized to a two-bedroom freehold unit in a gated community, leaving a mortgage of $120,000.

In 2018, Ennis’s wife died and he was left on his own.

His income dropped to a single person’s pension of $411 a week, topped up with about $170 a fortnight from the accommodation supplement.

‘‘My fortnightly mortgage repayments are $273.27. With the $715.03 left I am managing well. No luxuries, but I have my own home with the knowledge that nowhere could I find alternative accommodation for $136.63 per week.’’

He said he was not able to have overseas holidays or take cruises like some retirees did but he was able to do virtually everything he wanted to do.

‘‘I’m very happy. I’m in a gated community with great neighbours and a lot of support.

‘‘So, although I have a mortgage, I am happy that when I die there will be ample funds to clear the mortgage, pay my funeral expenses and leave a good amount to my two children. Retirees should not be depressed because they have a mortgage, but be thankful that they have a home that they can stay in as long as they like and still leave some of the equity as an inheritance.’’

Ennis said he approached the bank when his wife died to determine whether he would be able to continue with the mortgage on his own. But it said the budget he had drawn up was acceptable.

He said he was often asked how he managed on the pension alone. ‘‘I manage quite well... I would not regard my situation as ‘battling with’ [a mortgage] but ‘living with’.’’

I’m very happy. I’m in a gated community with great neighbours and a lot of support. Terry Ennis